Correlation Between Zhuhai Comleader and XinJiang GuoTong
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By analyzing existing cross correlation between Zhuhai Comleader Information and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Zhuhai Comleader and XinJiang GuoTong and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Zhuhai Comleader with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhuhai Comleader and XinJiang GuoTong.
Diversification Opportunities for Zhuhai Comleader and XinJiang GuoTong
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhuhai and XinJiang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhuhai Comleader Information and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and Zhuhai Comleader is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Zhuhai Comleader Information are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Zhuhai Comleader i.e., Zhuhai Comleader and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Zhuhai Comleader and XinJiang GuoTong
Assuming the 90 days trading horizon Zhuhai Comleader Information is expected to generate 1.27 times more return on investment than XinJiang GuoTong. However, Zhuhai Comleader is 1.27 times more volatile than XinJiang GuoTong Pipeline. It trades about 0.27 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.23 per unit of risk. If you would invest 1,099 in Zhuhai Comleader Information on September 14, 2024 and sell it today you would earn a total of 1,012 from holding Zhuhai Comleader Information or generate 92.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhuhai Comleader Information vs. XinJiang GuoTong Pipeline
Performance |
Timeline |
Zhuhai Comleader Inf |
XinJiang GuoTong Pipeline |
Zhuhai Comleader and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhuhai Comleader and XinJiang GuoTong
The main advantage of trading using opposite Zhuhai Comleader and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhuhai Comleader position performs unexpectedly, XinJiang GuoTong can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.Zhuhai Comleader vs. Industrial and Commercial | Zhuhai Comleader vs. China Construction Bank | Zhuhai Comleader vs. Bank of China | Zhuhai Comleader vs. Agricultural Bank of |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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